There were lots of important economic data releases this week, painting a picture of an economy with lower inflation but still over target, likely driven by consumer demand that is still quite strong, but the labor market seems to be showing some signs it may be rebalancing, with labor force participation up, job openings dropping, and unemployment ticking up a bit for the first time in awhile. Read on for details and other important news relating to personal finance.

Economics

• The August jobs report (BLS) came in at a relatively normal 187,000 added jobs, with a downward revision of 110,000 across June and July. A large number of people entered the workforce in August, a good sign, and unemployment ticked up to 3.8%, a rate not seen since early 2022, reflecting lots of strikes and Yellow bankruptcy as well as the increased labor force participation. (CNBC) (Yahoo Finance)
•  The Fed’s preferred inflation measure, the PCE deflator, came it at the same month-over-month increase in July as for June, but the year-over-year calculation came in a bit higher. (Marketwatch)
• Job Openings dropped by over a million in July, which was not expected. (Seeking Alpha)
• Consumer confidence dropped in August, reversing the gains seen in June and July. (Seeking Alpha)
• The post-pandemic global view of economic health coming out of the Jackson Hole conference was anything but upbeat. Howard Schneider of Reuters sums up what he learned.
• If you look at the historical spread between mortgage rates and the ten-year treasury yield, it is unusually high at the moment. Why? A Wealth of Common Sense examines this phenomenon.

Investing

• The first bitcoin ETF could be coming soon after Grayscale won its court case against the SEC. (CNBC)
• A Fidelity fund manager with a very good track record gives advice to investors—when to go for an index fund and under what conditions might you go for a more active strategy. (CNBC)

Higher Education

• Community colleges are countering lower enrollment by pushing dual enrollment as a source of income (and potential students.) Inside Higher Education.

Student Loans

• Interest begins accruing today, September 1, on student loans. Payments resume in October. Forbes’ Adam Minsky explains the four things you need to know.
• Washington Post’s Michelle Singletary explains the new SAVE program benefits.
• In a recent survey by Handshake, college seniors talk about their career plans, what they are looking for in an employer, the likelihood they will do gig work in addition to a job, particularly if they have student debt. (CNBC)
• (CNBC gives a summary, the Handshake link gives you the survey results.)

Budgeting/Retirement/Health Care

This video with Sharon Epperson of CNBC dives deep into the cost of caregiving. 48 million Americans are currently caring for a family member, usually an older one. The unpaid value of that care is estimated to be $600 billion! There are lots of great suggestions in the piece about where to look for help. (One piece pertains to your 18-year-old students, suggesting they get a health-care proxy so that their parents or other trusted person can make health care decisions for them should they become incapacitated.)

About the Author

Beth Tallman

Beth Tallman entered the working world armed with an MBA in finance and thoroughly enjoyed her first career working in manufacturing and telecommunications, including a stint overseas. She took advantage of an involuntary separation to try teaching high school math, something she had always dreamed of doing. When fate stepped in once again, Beth jumped on the opportunity to combine her passion for numbers, money, and education to develop curriculum and teach personal finance at Oberlin College. Beth now spends her time writing on personal finance and financial education, conducts student workshops, and develops finance curricula and educational content. She is also the Treasurer of Ohio Jump$tart Coalition for Personal Financial Literacy.

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